Trembeld Ltd. was developing a new product, and the following timeline occurred during 2015:

 

 

Required:

a. How would Trembeld account for the costs above if the company followed ASPE?

b. How would Trembeld account for the costs above if the company followed IFRS?

Transcribed Image Text:

January 1 to March 31, 2015 incurred the following costs: Materials Direct labour April 1, criteria to capitalize costs were met $180,000 64,000 May 1 to July 31, 2015, incurred the following costs: Materials 270,000 Direct labour 86,000 Directly related legal fees 25,400 Borrowing costs 8,600 January 1 to March 31, 2015 incurred the following costs: Materials Direct labour April 1, criteria to capitalize costs were met $180,000 64,000 May 1 to July 31, 2015, incurred the following costs: Materials 270,000 Direct labour 86,000 Directly related legal fees 25,400 Borrowing costs 8,600

Answer rating: 100% (QA)

Answer Accounting for Development Costs under ASPE and IFRS Trembeld Ltd is developing a new product and needs to determine how to account for the inc... View the full answer